ISLAMABAD, May 9 (Alliance News): Finance Minister Muhammad Aurangzeb said on Thursday that Pakistan’s macroeconomic indicators remain broadly stable despite regional tensions and external economic pressures, expressing confidence that the International Monetary Fund Executive Board would approve a $1.2 billion loan tranche for the country.
Aurangzeb made the remarks while briefing the National Assembly Standing Committee on Finance and Revenue at Parliament House in Islamabad, where he outlined progress on fiscal reforms, external financing, and macroeconomic stability measures.
The committee was informed that the IMF Executive Board meeting scheduled in Washington, D.C., was expected to approve the next tranche under Pakistan’s ongoing programme, with government officials expressing confidence that no major obstacles remained in the approval process.
State Bank of Pakistan Governor Jameel Ahmad also briefed lawmakers on external sector performance, revealing that the central bank had purchased around $27 billion from the market over the past three years.
He added that nearly $5 billion in repayments were made recently and projected that foreign exchange reserves could reach $17 billion by June 2026.
The governor said economic recovery indicators were improving, pointing to growth in large-scale manufacturing and a decline in inflation to around 7% in February before geopolitical tensions affected the outlook.
He noted that core inflation had risen to 8.2% due to higher energy and food prices but expected pressure to ease in the coming months.
Aurangzeb told the committee that Pakistan remained committed to prudent fiscal policies, structural reforms, and improved external account management to ensure long-term macroeconomic stability and restore investor confidence.
He highlighted progress in remittance inflows through Roshan Digital Accounts, improved access to international capital markets through Eurobond issuances, and preparations for issuing Panda Bonds in the near future.
He said exports were showing growth on both monthly and annual bases, while remittances and IT exports were also rising. The finance minister added that Pakistan was expected to maintain a current account surplus and that foreign exchange reserves could cover around three months of imports by the end of the fiscal year.
Despite external challenges, Aurangzeb noted that Pakistan had successfully raised $750 million through international bonds and was planning a $250 million Panda Bond issuance. He also highlighted strong inflows through Roshan Digital Accounts, with $260 million received in March alone.
However, he acknowledged that rising petroleum imports had increased the import bill and that inflation remained a key concern for households.
He said the government was taking steps to control inflation and maintain macroeconomic stability while continuing reforms in the energy sector.
Speaking informally to journalists, Aurangzeb declined to comment on potential electricity tariff changes, stating that final decisions would be announced by the Ministry of Energy under the guidance of Prime Minister Shehbaz Sharif.
Committee chairman Syed Naveed Qamar raised concerns over high interest rates and their impact on economic growth, while also highlighting export challenges due to disruptions in trade routes through Afghanistan, particularly affecting the pharmaceutical sector.
The IMF programme remains central to Pakistan’s ongoing economic stabilisation strategy, with authorities emphasising fiscal discipline, revenue mobilisation, and structural reforms as key pillars for sustained recovery.
